Is Tredegar Corp. overvalued or undervalued?

As of 8 May 2025, Tredegar Corp. has moved from an attractive to a risky valuation grade. The company appears to be overvalued, with a P/E ratio of 26, which is significantly higher than peers like Century Aluminum Co. at 16.16 and Kaiser Aluminum Corp. at 37.66. Additionally, Tredegar's EV to EBITDA stands at 7.26, while its PEG ratio is notably low at 0.22, indicating potential concerns about growth relative to its price.
In comparison to its peers, Tredegar's financial metrics suggest it is not positioned favorably, especially considering its ROCE of 9.20% and ROE of 5.96%. The company's stock has performed well over the past year with an 80.92% return, but its long-term performance has lagged behind the S&P 500, which raises questions about its sustainability at current valuation levels. Overall, Tredegar Corp. is assessed as overvalued based on these financial ratios and peer comparisons.